NEW YORK, Jan. 8, 2002 (PRIMEZONE) -- Wechsler Harwood LLP today announced that a securities class action has been commenced on behalf of persons or entities who purchased or otherwise acquired the securities of 800America.com ("800America" or the "Company") (Other OTC:ACCO) during the period between January 17, 2001 and November 13, 2002, inclusive (the "Class Period").
The case is pending in the United States District Court for the Southern District of New York against defendants 800America, certain of its officers and directors, and its accountant. A copy of the complaint is available from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com
The lawsuit charges that defendants violated Sections 10(b) of the Securities Exchange Act of 1934 by engaging in a massive, multifaceted scheme to artificially inflate the value of 800America stock by "cooking" its books and records, and by issuing public filings that grossly distorted the Company's true state of affairs. The Complaint alleges that, throughout the Class Period, defendants engaged in fraudulent actions which included, among other things: (a) reporting millions of dollars in fictitious earnings, revenues, expenses and assets, deliberately concealed by defendants' creation of phony bank statements, checks, invoices and a general ledger, which they supplied to 800America's auditor; (b) the misappropriation and looting of substantial assets of the Company by defendants David Elie Rabi ("Rabi") and Tillie Ruth Steeples ("Steeples") through transfers of funds from 800America accounts to accounts controlled by Rabi and/or Staples; (c) the issuance of a press release falsely denying Rabi's criminal past and failing to disclose that Steeples was a control person of the Company; and (d) the filing of a 10-KSB which listed as officers and/or directors or "significant employees" several individuals who had either left the Company or could not be located by the Company.
The Complaint further alleges that 800America maintained two separate sets of books in furtherance of their fraud, in which virtually all of its reported revenues in fiscal years 2001 and 2002 were fictitious. In addition, 800America reported approximately $13.2 million in cash assets for fiscal year 2001-supported by a phony bank statement provided to the Company's auditor reflecting approximately $12.67 million in cash-while the actual bank statement reflected that such account never contained more than $640.66 for that entire period. On November 13, 2002, the Securities & Exchange Commission (SEC) filed a civil action against 800America, Rabi and Steeples in the Southern District of New York, alleging that the Company falsified virtually all of its reported revenue, concealed the criminal histories of Rabi and Steeples, and otherwise perpetrated a massive fraud against investors. Both Rabi and Steeples were arrested on criminal charges in connection with this fraud.
If you purchased securities during the Class Period, you may, no later than February 7, 2003, move to be appointed as a lead plaintiff in this class action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
More information on this and other Class Action Lawsuits can be found at www.primezone.com/ca